How to be a Successful Business Owner
According to Fortune Magazine, an astonishing 9 out of 10 new businesses fail.
And at first glance, it’s a disheartening statistic. After all, why put all your hard work and money into a business when you only have a 10 percent chance of success? But a closer inspection of the numbers shows a different story. What differentiates the business successes and failures is what the business owners did and did not do. The top 3 reasons for the failures are:
No need for the product. (42 percent)
Ran out of cash. (29 percent)
Didn’t have the right team (23 percent)
A quick glance at these areas of failure highlight an important fact: you must invest in some planning before you launch your business.
Be Certain There’s a Market for Your Business. It sounds really simple, doesn’t it? But 42 percent of businesses in the above study failed because the owners launched a product or service that consumers didn’t want. To prevent this from happening, you should take a few steps before you open your doors
Plan Your Finances Carefully Running a business almost always costs more than you expect. That’s why 29 percent of the businesses in the survey failed due to a lack of cash. In order to understand how much capital you’ll need to run your business until it makes a profit, you’ll need to plan for your projected monthly expenses, capital expenditures, assets and cash in the bank to get an estimate. If you have some financial planning behind you and some startup capital, it makes it a lot easier and the business a lot more likely to succeed until it can turn a profit.
You need to be able to support the financial obligations that come up when launching a company, and if you limit every decision to the small amount of capital you have as a new business owner, you’ll face the risk of blocking the ability to get things done. This is where we come in, we can help you kee that Cash Flow you will so desperately need. Keep our number handy and follow our BLOG for News and Insights.
Get the Right Team in Place- Can you image a franchise winning the Super Bowl without the right team in place? It’s no different for business owners—it takes the right people with the right experience to guide your business to success. And a good accountant will help keep your finances in order so you can concentrate on other aspects of your business. Depending on your skill set, you may also need to hire a good marketing specialist, tech person, or logistics expert.